• NBT Bancorp Inc. Announces Second Quarter Net Income of $30.1 Million ($0.70 Per Diluted Common Share)

    Source: Nasdaq GlobeNewswire / 31 Jul 2023 15:15:01   America/Chicago

    NORWICH, N.Y., July 31, 2023 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2023.

    Net income for the three months ended June 30, 2023 was $30.1 million, or $0.70 per diluted common share, compared to $37.8 million, or $0.88 per diluted share, for the three months ended June 30, 2022, and $33.7 million, or $0.78 per diluted share, in the first quarter of 2023.

    • Excluding the impact of securities losses and acquisition expenses, the Company generated $0.80 per diluted share of earnings in the second quarter of 2023, compared to $0.89 per share in the second quarter of 2022 and $0.88 per share in the first quarter of 2023. Net interest income was impacted on a linked quarter basis from the continuation of higher funding costs.
    • In the second quarter of 2023, the Company realized $4.5 million ($0.08 per diluted share) in securities losses. In the first quarter of 2023, the Company realized a $5.0 million ($0.09 per diluted share) securities loss.
    • The Company incurred acquisition expenses of $1.2 million ($0.02 per diluted share) and $0.6 million ($0.01 per diluted share) related to the pending merger with Salisbury Bancorp, Inc. (“Salisbury”) in the second quarter of 2023 and the first quarter of 2023, respectively.
    • Period end total loans increased $208.0 million from December 31, 2022, or 5.1% annualized.

    CEO Comments

    “We delivered solid operating performance for the second quarter and the first half of 2023. Our results reflect the ongoing focus on our long-term strategies, the strength of our balance sheet and our diversified business model,” said NBT President and CEO John H. Watt, Jr. “We grew loans in all our core portfolios in the second quarter, and our funding sources remained resilient. Our credit performance remained consistent and favorable, and we continued to grow capital. We were also very pleased to have received all the regulatory and shareholder approvals required to proceed with our planned combination with Salisbury Bancorp. We expect the merger to close on August 11, 2023. Our integration team with representatives from NBT and Salisbury has worked diligently to ensure the best possible customer experience upon the conversion of Salisbury customer relationships,” said Watt.

    Second Quarter Financial Highlights

    Net Income
    • Net income of $30.1 million
    • Diluted earnings per share of $0.70
    • Excluding acquisition expenses and securities losses, diluted earnings per share of $0.80
    Net Interest Income
    / NIM
    • Net interest income on a fully taxable equivalent (“FTE”) basis was $89.5 million1
    • Net interest margin (“NIM”) on an FTE basis was 3.27%1, down 28 basis points (“bps”) from the prior quarter
    • Earning asset yields of 4.42%, up 16 bps from the prior quarter
    • Total cost of funds of 1.22%, up 47 bps from the prior quarter
    Noninterest Income
    • Excluding securities losses, noninterest income was $36.7 million and was 29.2% of total revenue
    Loans and Credit
    Quality
    • Period end total loans of $8.36 billion as of June 30, 2023, up $208.0 million, or 5.1%, annualized, from December 31, 2022
    • Net charge-offs to average loans were 0.17%, annualized
    • Nonperforming loans to total loans was 0.24%, compared to 0.23% in the prior quarter and down from 0.33% in the second quarter of 2022
    • Allowance for loan losses to total loans of 1.20%
    Deposits
    • Deposits were $9.53 billion as of June 30, 2023, up $34.0 million, or 0.4%, from December 31, 2022
    • Total cost of deposits was 0.85% for the second quarter of 2023, up 38 bps from the prior quarter
    • Full cycle to-date deposit beta of 17%
    • Deposit composition is diverse and granular with over 523,000 accounts with an average per account balance of $18,202
    Capital
    • Stockholders’ equity was $1.21 billion as of June 30, 2023
    • Tangible book value per share2 was $21.55 at June 30, 2023, consistent with the first quarter of 2023 and 2.7% higher than the second quarter of 2022
    • Tangible equity to assets of 7.95%1
    • CET1 ratio of 12.29%; Leverage ratio of 10.51%


    Loans

    • Period end total loans were $8.36 billion at June 30, 2023, $8.26 billion at March 31, 2023 and $8.15 billion at December 31, 2022.
    • Period end loans increased $208.0 million from December 31, 2022. Commercial and industrial loans increased $53.1 million to $1.32 billion; commercial real estate loans increased $76.3 million to $2.88 billion; and total consumer loans increased $78.6 million to $4.15 billion. Included in total consumer loans is $158 million of a portfolio of loans in a run-off status.
    • Commercial line of credit utilization rate was 23% at June 30, 2023, compared to 22% at March 31, 2023 and 23% at June 30, 2022.

    Deposits

    • Total deposits at June 30, 2023 were $9.53 billion, compared to $9.50 billion at December 31, 2022. The Company continues to experience migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments.
    • Loan to deposit ratio was 87.7% at June 30, 2023, compared to 85.8% at December 31, 2022.

    Net Interest Income and Net Interest Margin

    • Net interest income for the second quarter of 2023 was $89.1 million, which was down $6.0 million, or 6.3%, from the first quarter of 2023 and up $1.5 million, or 1.7%, from the second quarter of 2022.
    • The NIM on an FTE basis for the second quarter of 2023 was 3.27%, down 28 bps from the first quarter of 2023 driven by the increase in the cost of interest-bearing deposits, as well as a $200.6 million increase in the average balance of short-term borrowings and a 31 bp increase on the rates paid on those borrowings. The NIM on an FTE basis was up 6 bps from the second quarter of 2022 due to higher earning asset yields partially offset by the increase in the cost of interest-bearing deposits, as well as higher balances in short-term borrowings and the rates paid on those borrowings.
    • Earning asset yields for the three months ended June 30, 2023 were up 16 bps from the prior quarter to 5.17% and up 107 bps from the same quarter in the prior year. Earning assets grew $73.4 million, or 0.7%, from the first quarter of 2023, or 2.7% annualized.
    • Total cost of deposits, including noninterest bearing deposits, was 0.85% for the second quarter of 2023, up 38 bps from the prior quarter and up 78 bps from the same period in the prior year.
    • Total cost of funds for the three months ended June 30, 2023 was 1.22%, up 47 bps from the prior quarter and up 107 bps from the second quarter of 2022.

    Asset Quality and Allowance for Loan Losses

    • Net charge-offs to total average loans was 17 bps compared to 19 bps in the prior quarter and 4 bps in the second quarter of 2022. The increase in net charge-offs from the second quarter of 2022 was due to an increase in charge-offs in the Company’s other consumer portfolio, which is in a run-off status. Net charge-offs for the portfolios in a run-off status represented 68% of total net charge-offs.
    • Nonperforming assets to total assets were 0.17% at June 30, 2023, compared to 0.16% at March 31, 2023 and 0.22% at June 30, 2022.
    • Provision expense for the three months ended June 30, 2023 was $3.6 million, compared to $3.9 million for the first quarter of 2023 and $4.4 million for the second quarter of 2022.
    • The allowance for loan losses was $100.4 million, or 1.20% of total loans, at June 30, 2023, compared to 1.21% of total loans at March 31, 2023 and 1.20% of total loans at June 30, 2022. The reserve for unfunded loan commitments decreased to $4.4 million at June 30, 2023 compared to the prior quarter-end at $4.5 million and to $5.1 million at June 30, 2022.

    Noninterest Income

    • Total noninterest income, excluding securities losses, was $36.7 million for the three months ended June 30, 2023, up $0.3 million from the first quarter and down $5.6 million from the prior year’s second quarter.
    • Card services income increased $0.3 million from the prior quarter and decreased $4.6 million from the second quarter of 2022 primarily driven by the impact on debit interchange revenues from the statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act which the Company became subject to in the third quarter of 2022.
    • Retirement plan administration fees were up $0.3 million from the prior quarter and were $0.9 million lower than the second quarter of 2022 driven by a decrease in activity-based fees which were primarily statutory plan document restatements.
    • In the second quarter of 2023, the Company incurred a $4.5 million ($0.08 per diluted share) securities loss on the sale of two subordinated debt securities held in the AFS portfolio. In the first quarter of 2023, the Company recorded a $5.0 million ($0.09 per diluted share) securities loss related to the write-off of a subordinated debt security of a failed bank.

    Noninterest Expense

    • Total noninterest expense, excluding $1.2 million of acquisition expenses in the second quarter of 2023 and $0.6 million in the first quarter of 2023, decreased 1.4% compared to the previous quarter and increased 2.0% from the second quarter of 2022.
    • Salaries and benefits decreased 2.7% from the prior quarter driven by seasonally higher payroll taxes and higher stock-based compensation expenses in the first quarter along with a lower level of incentive compensation in the second quarter. These decreases were partially offset by a full quarter of merit pay increases and higher health and welfare benefits.
    • Technology and data services expenses increased over the prior quarter and from the second quarter of 2022 due to continued investment in digital platform solutions.
    • Occupancy costs decreased from the prior quarter due to lower seasonal maintenance, equipment costs and utilities and increased from the second quarter of 2022 driven by higher utilities, rent and seasonal maintenance costs.
    • FDIC assessment expense was comparable to the prior quarter and increased $0.5 million ($0.01 per diluted share) from the second quarter of 2022 driven by the statutory increase in the FDIC assessment rate.

    Income Taxes

    • The effective tax rate was 22.4% for the second quarter of 2023, compared to 22.2% for the first quarter of 2023 and 22.5% for the second quarter of 2022.

    Capital

    • Capital ratios are strong with tangible common equity to tangible assets1 at 7.95%. Tangible book value per share2 was $21.55 at June 30, 2023, $21.52 at March 31, 2023 and $20.99 at June 30, 2022.
    • Stockholders’ equity increased $36.9 million from December 31, 2022 driven by net income generation of $63.7 million, partially offset by dividends declared of $25.7 million and the repurchase of common stock of $2.8 million.
    • June 30, 2023, CET1 capital ratio of 12.29%, leverage ratio of 10.51% and total risk-based capital ratio of 15.50%.

    Stock Repurchase

    • The Company purchased 87,000 shares of its common stock in the second quarter of 2023 at an average price of $31.94 per share under its previously announced share repurchase program. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of June 30, 2023, there were 1,513,000 shares available for repurchase under this plan authorized on December 20, 2021 and set to expire on December 31, 2023.

    Salisbury Bancorp, Inc. Merger

    • On July 10, 2023, NBT announced it has received the requisite regulatory approvals and waivers from the Office of the Comptroller of the Currency, the Connecticut State Banking Department and the Federal Reserve Bank of New York necessary to complete its acquisition of Salisbury. NBT and Salisbury anticipate closing the transaction on August 11, 2023, subject to the satisfaction of customary closing conditions. A weekend systems conversion will follow with locations of Salisbury Bank opening as NBT Bank offices on August 14, 2023. Salisbury is a Connecticut-chartered commercial bank with 13 banking offices in northwestern Connecticut, the Hudson Valley region of New York, and southwestern Massachusetts. Salisbury had assets of $1.56 billion, deposits of $1.36 billion and net loans of $1.24 billion as of June 30, 2023.

    Other Events

    • On July 1, 2023, the Company’s subsidiary national benefits administration firm, EPIC Retirement Plan Services (“EPIC RPS”), completed an asset purchase of Retirement Direct, LLC, based near Charlotte, NC. Retirement Direct served more than 500 qualified and nonqualified retirement plans and had over $2 billion in client assets under management. EPIC RPS has a client base that spans all 50 states and now supports over 5,000 retirement plans with more than 300,000 plan participants.

    Conference Call and Webcast

    The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, August 1, 2023, to review second quarter 2023 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://www.nbtbancorp.com/bn/presentations-events.html#events and will be archived for twelve months.

    Corporate Overview

    NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $11.89 billion at June 30, 2023. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

    Forward-Looking Statements

    This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, and the impact they may have on the Company and its customers and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) the businesses of NBT and Salisbury may not be combined successfully; (14) the possibility that NBT and Salisbury may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all or to successfully integrate Salisbury’s operations and those of NBT; (15) the ability to increase market share and control expenses; (16) changes in the competitive environment among financial holding companies; (17) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) changes in the Company’s organization, compensation and benefit plans; (20) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (21) greater than expected costs or difficulties related to the integration of new products and lines of business; and (22) the Company’s success at managing the risks involved in the foregoing items.

    The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.

    Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    Non-GAAP Measures

    This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.

    NBT Bancorp Inc. and Subsidiaries     
    Selected Financial Data     
    (unaudited, dollars in thousands except per share data)    
          
      2023  2022 
     2nd Q1st Q4th Q3rd Q2nd Q
    Profitability:     
    Diluted earnings per share$ 0.70 $0.78 $0.84 $0.90 $0.88 
    Weighted average diluted common shares outstanding 43,126,498  43,125,986  43,144,666  43,110,932  43,092,851 
    Return on average assets3 1.02% 1.16% 1.23% 1.33% 1.28%
    Return on average equity3 9.91% 11.47% 12.30% 12.87% 12.73%
    Return on average tangible common equity1 3 13.13% 15.31% 16.54% 17.12% 17.00%
    Net interest margin1 3 3.27% 3.55% 3.68% 3.51% 3.21%
          
     6 Months Ended June 30,   
      2023  2022    
    Profitability:     
    Diluted earnings per share$ 1.48 $1.78    
    Weighted average diluted common shares outstanding 43,129,259  43,238,248    
    Return on average assets 1.09% 1.30%   
    Return on average equity 10.68% 12.76%   
    Return on average tangible common equity1 14.20% 16.93%   
    Net interest margin1 3.41% 3.08%   
          
      2023  2022 
     2nd Q1st Q4th Q3rd Q2nd Q
    Balance sheet data:     
    Short-term interest-bearing accounts$ 31,878 $68,045 $30,862 $97,303 $328,593 
    Securities available for sale 1,453,926  1,512,008  1,527,225  1,556,501  1,619,356 
    Securities held to maturity 912,876  906,824  919,517  929,541  936,512 
    Net loans 8,257,724  8,164,328  8,049,347  7,807,984  7,684,081 
    Total assets 11,890,497  11,839,730  11,739,296  11,640,742  11,720,459 
    Total deposits 9,529,919  9,681,205  9,495,933  9,918,751  10,028,708 
    Total borrowings 880,518  703,248  787,950  277,889  265,796 
    Total liabilities 10,680,004  10,628,071  10,565,742  10,484,196  10,531,903 
    Stockholders' equity 1,210,493  1,211,659  1,173,554  1,156,546  1,188,556 
          
    Capital:     
    Equity to assets 10.18% 10.23% 10.00% 9.94% 10.14%
    Tangible equity ratio1 7.95% 7.99% 7.73% 7.64% 7.87%
    Book value per share$ 28.26 $28.24 $27.38 $27.00 $27.75 
    Tangible book value per share2$ 21.55 $21.52 $20.65 $20.25 $20.99 
    Leverage ratio 10.51% 10.43% 10.32% 10.21% 9.77%
    Common equity tier 1 capital ratio 12.29% 12.28% 12.12% 12.17% 12.14%
    Tier 1 capital ratio 13.35% 13.34% 13.19% 13.27% 13.27%
    Total risk-based capital ratio 15.50% 15.53% 15.38% 15.50% 15.50%
    Common stock price (end of period)$ 31.85 $33.71 $43.42 $37.95 $37.59 
          


    NBT Bancorp Inc. and Subsidiaries     
    Asset Quality and Consolidated Loan Balances     
    (unaudited, dollars in thousands)     
          
      2023  2022 
     2nd Q1st Q4th Q3rd Q2nd Q
    Asset quality:     
    Nonaccrual loans$ 16,931 $16,284 $17,233 $19,098 $23,673 
    90 days past due and still accruing 2,755  2,328  3,823  2,732  2,096 
    Total nonperforming loans 19,686  18,612  21,056  21,830  25,769 
    Other real estate owned 179  105  105  -  - 
    Total nonperforming assets 19,865  18,717  21,161  21,830  25,769 
    Allowance for loan losses 100,400  100,250  100,800  96,800  93,600 
          
    Asset quality ratios:     
    Allowance for loan losses to total loans 1.20% 1.21% 1.24% 1.22% 1.20%
    Total nonperforming loans to total loans 0.24% 0.23% 0.26% 0.28% 0.33%
    Total nonperforming assets to total assets 0.17% 0.16% 0.18% 0.19% 0.22%
    Allowance for loan losses to total nonperforming loans 510.01% 538.63% 478.72% 443.43% 363.23%
    Past due loans to total loans4 0.45% 0.30% 0.33% 0.30% 0.40%
    Net charge-offs to average loans3 0.17% 0.19% 0.18% 0.07% 0.04%
          
      2023  2022 
     2nd Q1st Q4th Q3rd Q2nd Q
    Loan net charge-offs by line of business:      
    Commercial & industrial$ 51 $(294)$(45)$(1,045)$(298)
    Commercial real estate 41  42  8  324  (246)
    Residential real estate and home equity (43) 80  (79) (56) (210)
    Indirect auto 273  423  445  222  163 
    Residential solar 581  656  596  43  153 
    Other consumer 2,553  2,904  2,752  1,796  1,228 
    Total loan net charge-offs$ 3,456 $3,811 $3,677 $1,284 $790 
          
      2023  2022 
     2nd Q1st Q4th Q3rd Q2nd Q
    Allowance for loan losses as a percentage of loans by segment:    
    Commercial & industrial 0.86%  0.85%  0.82%  0.80%  0.74% 
    Commercial real estate 0.93%  0.93%  0.91%  0.88%  0.89% 
    Residential real estate 0.73%  0.73%  0.72%  0.74%  0.79% 
    Auto 0.80%  0.77%  0.81%  0.78%  0.79% 
    Residential solar 3.09%  3.04%  3.21%  3.08%  3.00% 
    Other consumer 5.98%  6.19%  6.27%  6.67%  6.19% 
    Total 1.20%  1.21%  1.24%  1.22%  1.20% 
          
      2023  2022 
     2nd Q1st Q4th Q3rd Q2nd Q
    Loans by line of business:      
    Commercial & industrial$ 1,318,340 $1,277,446 $1,265,082 $1,258,871 $1,298,072 
    Commercial real estate 2,884,264  2,845,631  2,807,941  2,724,728  2,670,633 
    Paycheck protection program 753  845  949  3,328  17,286 
    Residential real estate 1,666,204  1,651,918  1,649,870  1,626,528  1,606,188 
    Indirect auto 1,048,739  1,031,315  989,587  952,757  936,516 
    Residential solar 926,365  920,084  856,798  728,898  599,565 
    Home equity 310,897  308,219  314,124  313,557  313,395 
    Other consumer 202,562  229,120  265,796  296,117  336,026 
    Total loans$ 8,358,124 $8,264,578 $8,150,147 $7,904,784 $7,777,681 
          
    PPP income recognized$ 5 $9 $71 $320 $1,301 
    PPP unamortized fees$ 35 $38 $45 $108 $414 
          


    NBT Bancorp Inc. and Subsidiaries
    Consolidated Balance Sheets
    (unaudited, dollars in thousands)
       
     June 30,December 31,
    Assets20232022
    Cash and due from banks$ 170,010 $166,488
    Short-term interest-bearing accounts 31,878  30,862
    Equity securities, at fair value 33,893  30,784
    Securities available for sale, at fair value 1,453,926  1,527,225
    Securities held to maturity (fair value $808,641 and $812,647, respectively) 912,876  919,517
    Federal Reserve and Federal Home Loan Bank stock 53,076  44,713
    Loans held for sale 1,866  562
    Loans 8,358,124  8,150,147
    Less allowance for loan losses 100,400  100,800
    Net loans$ 8,257,724 $8,049,347
    Premises and equipment, net 66,799  69,047
    Goodwill 281,204  281,204
    Intangible assets, net 6,497  7,341
    Bank owned life insurance 233,400  232,409
    Other assets 387,348  379,797
    Total assets$ 11,890,497 $11,739,296
       
    Liabilities and stockholders' equity  
    Demand (noninterest bearing)$ 3,326,685 $3,617,324
    Savings, NOW and money market 5,224,560  5,444,837
    Time 978,674  433,772
    Total deposits$ 9,529,919 $9,495,933
    Short-term borrowings 652,413  585,012
    Long-term debt 29,764  4,815
    Subordinated debt, net 97,145  96,927
    Junior subordinated debt 101,196  101,196
    Other liabilities 269,567  281,859
    Total liabilities$ 10,680,004 $10,565,742
       
    Total stockholders' equity$ 1,210,493 $1,173,554
       
    Total liabilities and stockholders' equity$ 11,890,497 $11,739,296
       


    NBT Bancorp Inc. and Subsidiaries
    Consolidated Statements of Income
    (unaudited, dollars in thousands except per share data)
         
     Three Months EndedSix Months Ended
     June 30,June 30,
      2023  2022  2023  2022 
    Interest, fee and dividend income    
    Interest and fees on loans$ 106,935 $78,539 $ 207,834 $151,882 
    Securities available for sale 7,493  7,317  15,109  14,157 
    Securities held to maturity 4,991  4,185  10,026  7,678 
    Other 1,170  1,442  1,812  1,967 
    Total interest, fee and dividend income$ 120,589 $91,483 $ 234,781 $175,684 
    Interest expense    
    Deposits$ 19,986 $1,756 $ 31,130 $3,598 
    Short-term borrowings 8,126  13  13,045  29 
    Long-term debt 290  33  337  120 
    Subordinated debt 1,335  1,359  2,669  2,718 
    Junior subordinated debt 1,767  737  3,449  1,286 
    Total interest expense$ 31,504 $3,898 $ 50,630 $7,751 
    Net interest income$ 89,085 $87,585 $ 184,151 $167,933 
    Provision for loan losses 3,606  4,390  7,515  4,986 
    Net interest income after provision for loan losses$ 85,479 $83,195 $ 176,636 $162,947 
    Noninterest income    
    Service charges on deposit accounts$ 3,733 $3,763 $ 7,281 $7,451 
    Card services income 5,121  9,751  9,966  18,446 
    Retirement plan administration fees 11,735  12,676  23,197  25,955 
    Wealth management 8,227  8,252  16,314  16,892 
    Insurance services 3,716  3,578  7,647  7,366 
    Bank owned life insurance income 1,528  1,411  3,406  3,065 
    Net securities (losses) (4,641) (587) (9,639) (766)
    Other 2,626  2,812  5,282  5,906 
    Total noninterest income$ 32,045 $41,656 $ 63,454 $84,315 
    Noninterest expense    
    Salaries and employee benefits$ 46,834 $46,716 $ 94,989 $92,224 
    Technology and data services 9,305  8,945  18,312  17,492 
    Occupancy 6,923  6,487  14,143  13,280 
    Professional fees and outside services 4,159  3,906  8,337  8,182 
    Office supplies and postage 1,676  1,548  3,304  2,972 
    FDIC assessment 1,344  810  2,740  1,612 
    Advertising 525  730  1,174  1,384 
    Amortization of intangible assets 458  545  994  1,181 
    Loan collection and other real estate owned, net 691  757  1,546  1,141 
    Acquisition expenses 1,189  -  1,807  - 
    Other 5,690  5,675  10,770  8,794 
    Total noninterest expense$ 78,794 $76,119 $ 158,116 $148,262 
    Income before income tax expense$ 38,730 $48,732 $ 81,974 $99,000 
    Income tax expense 8,658  10,957  18,244  22,099 
    Net income$ 30,072 $37,775 $ 63,730 $76,901 
    Earnings Per Share    
    Basic$ 0.70 $0.88 $ 1.49 $1.79 
    Diluted$ 0.70 $0.88 $ 1.48 $1.78 
         


    NBT Bancorp Inc. and Subsidiaries     
    Quarterly Consolidated Statements of Income    
    (unaudited, dollars in thousands except per share data)    
          
      2023  2022 
     2nd Q1st Q4th Q3rd Q2nd Q
    Interest, fee and dividend income     
    Interest and fees on loans$ 106,935 $100,899 $95,620 $85,266 $78,539 
    Securities available for sale 7,493  7,616  7,831  7,665  7,317 
    Securities held to maturity 4,991  5,035  5,050  4,854  4,185 
    Other 1,170  642  671  1,429  1,442 
    Total interest, fee and dividend income$ 120,589 $114,192 $109,172 $99,214 $91,483 
    Interest expense     
    Deposits$ 19,986 $11,144 $4,092 $2,233 $1,756 
    Short-term borrowings 8,126  4,919  2,510  84  13 
    Long-term debt 290  47  21  20  33 
    Subordinated debt 1,335  1,334  1,346  1,360  1,359 
    Junior subordinated debt 1,767  1,682  1,424  1,039  737 
    Total interest expense$ 31,504 $19,126 $9,393 $4,736 $3,898 
    Net interest income$ 89,085 $95,066 $99,779 $94,478 $87,585 
    Provision for loan losses 3,606  3,909  7,677  4,484  4,390 
    Net interest income after provision for loan losses$ 85,479 $91,157 $92,102 $89,994 $83,195 
    Noninterest income     
    Service charges on deposit accounts$ 3,733 $3,548 $3,598 $3,581 $3,763 
    Card services income 5,121  4,845  4,958  5,654  9,751 
    Retirement plan administration fees 11,735  11,462  10,661  11,496  12,676 
    Wealth management 8,227  8,087  8,017  8,402  8,252 
    Insurance services 3,716  3,931  3,438  3,892  3,578 
    Bank owned life insurance income 1,528  1,878  1,419  1,560  1,411 
    Net securities (losses) (4,641) (4,998) (217) (148) (587)
    Other 2,626  2,656  2,217  2,735  2,812 
    Total noninterest income$ 32,045 $31,409 $34,091 $37,172 $41,656 
    Noninterest expense     
    Salaries and employee benefits$ 46,834 $48,155 $47,235 $48,371 $46,716 
    Technology and data services 9,305  9,007  9,124  9,096  8,945 
    Occupancy 6,923  7,220  6,521  6,481  6,487 
    Professional fees and outside services 4,159  4,178  4,811  3,817  3,906 
    Office supplies and postage 1,676  1,628  1,699  1,469  1,548 
    FDIC assessment 1,344  1,396  798  787  810 
    Advertising 525  649  879  559  730 
    Amortization of intangible assets 458  536  538  544  545 
    Loan collection and other real estate owned, net 691  855  957  549  757 
    Acquisition expenses 1,189  618  967  -  - 
    Other 5,690  5,080  5,980  5,021  5,675 
    Total noninterest expense$ 78,794 $79,322 $79,509 $76,694 $76,119 
    Income before income tax expense$ 38,730 $43,244 $46,684 $50,472 $48,732 
    Income tax expense 8,658  9,586  10,563  11,499  10,957 
    Net income$ 30,072 $33,658 $36,121 $38,973 $37,775 
    Earnings Per Share     
    Basic$ 0.70 $0.78 $0.84 $0.91 $0.88 
    Diluted$ 0.70 $0.78 $0.84 $0.90 $0.88 
          


    NBT Bancorp Inc. and Subsidiaries           
    Average Quarterly Balance Sheets           
    (unaudited, dollars in thousands)           
                
      Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates
      Q2 - 2023Q1 - 2023Q4 - 2022Q3 - 2022Q2 - 2022
    Assets           
    Short-term interest-bearing accounts $ 28,4733.62%$34,2152.26%$39,5733.31%$191,4632.51%$553,5480.82%
    Securities taxable1  2,394,0271.90% 2,442,7321.92% 2,480,9591.88% 2,491,3151.83% 2,439,9601.74%
    Securities tax-exempt 1 5  201,4992.83% 202,3212.81% 208,2382.68% 211,3062.47% 256,7991.83%
    FRB and FHLB stock  51,4547.12% 41,1444.45% 32,9034.11% 25,1823.47% 24,9835.03%
    Loans1 6  8,307,8945.17% 8,189,5205.00% 8,039,4424.72% 7,808,0254.34% 7,707,7304.09%
    Total interest-earning assets $ 10,983,3474.42%$10,909,9324.26%$10,801,1154.02%$10,727,2913.68%$10,983,0203.35%
    Other assets  835,424  836,879  855,410  887,378  883,498 
    Total assets $ 11,818,771 $11,746,811 $11,656,525 $11,614,669 $11,866,518 
    Liabilities and stockholders' equity           
    Money market deposit accounts $ 2,113,9652.30%$2,081,2101.22%$2,169,1920.39%$2,332,3410.15%$2,577,3670.14%
    NOW deposit accounts  1,463,9530.38% 1,598,8340.36% 1,604,0960.33% 1,548,1150.21% 1,580,1320.07%
    Savings deposits  1,708,8740.03% 1,781,4650.03% 1,823,0560.03% 1,854,1220.03% 1,845,1280.03%
    Time deposits  856,3052.97% 639,6452.10% 432,1100.41% 455,1680.35% 478,5310.37%
    Total interest-bearing deposits $ 6,143,0971.30%$6,101,1540.74%$6,028,4540.27%$6,189,7460.14%$6,481,1580.11%
    Federal funds purchased  48,4075.35% 44,3344.92% 56,5764.03% 1,5223.39% -- 
    Repurchase agreements  55,6271.08% 71,3400.08% 76,3340.11% 69,0480.10% 60,0610.09%
    Short-term borrowings  557,8185.27% 357,2004.96% 177,5334.28% 6,4403.33% -- 
    Long-term debt  29,7733.91% 7,2992.61% 3,8172.18% 3,3312.38% 5,3362.48%
    Subordinated debt, net  97,0815.52% 96,9665.58% 97,8395.46% 98,7485.46% 98,6425.53%
    Junior subordinated debt  101,1967.00% 101,1966.74% 101,1965.58% 101,1964.07% 101,1962.92%
    Total interest-bearing liabilities $ 7,032,9991.80%$6,779,4891.14%$6,541,7490.57%$6,470,0310.29%$6,746,3930.23%
    Demand deposits  3,316,955  3,502,489  3,658,965  3,708,131  3,711,049 
    Other liabilities  251,511  274,517  290,895  234,851  218,491 
    Stockholders' equity  1,217,306  1,190,316  1,164,916  1,201,656  1,190,585 
    Total liabilities and stockholders' equity $ 11,818,771 $11,746,811 $11,656,525 $11,614,669 $11,866,518 
    Interest rate spread  2.62% 3.12% 3.45% 3.39% 3.12%
    Net interest margin (FTE)1  3.27% 3.55% 3.68% 3.51% 3.21%
                


    NBT Bancorp Inc. and Subsidiaries
    Average Year-to-Date Balance Sheets
    (unaudited, dollars in thousands)
            
      Average Yield/Average Yield/
      BalanceInterestRates BalanceInterestRates
    Six Months Ended June 30,  2023  2022 
    Assets       
    Short-term interest-bearing accounts $ 31,328$ 4472.88%$770,727$1,5330.40%
    Securities taxable1  2,418,245 22,9021.91% 2,362,699 19,9811.71%
    Securities tax-exempt1 5  201,908 2,8262.82% 257,651 2,3471.84%
    FRB and FHLB stock  46,327 1,3655.94% 25,004 4343.50%
    Loans1 6  8,249,034 208,0385.09% 7,619,691 151,9644.02%
    Total interest-earning assets $ 10,946,842$ 235,5784.34%$11,035,772$176,2593.22%
    Other assets  836,148   915,361  
    Total assets $ 11,782,990  $11,951,133  
    Liabilities and stockholders' equity       
    Money market deposit accounts $ 2,097,678$ 18,3681.77%$2,648,458$1,9240.15%
    NOW deposit accounts  1,531,021 2,8240.37% 1,581,603 4600.06%
    Savings deposits  1,744,969 2860.03% 1,819,978 2930.03%
    Time deposits  748,573 9,6522.60% 486,537 9210.38%
    Total interest-bearing deposits $ 6,122,241$ 31,1301.03%$6,536,576$3,5980.11%
    Federal funds purchased  46,381 1,1845.15% - -- 
    Repurchase agreements  63,440 1640.52% 66,379 290.09%
    Short-term borrowings  458,064 11,6975.15% - -- 
    Long-term debt  18,598 3373.65% 9,634 1202.51%
    Subordinated debt, net  97,024 2,6695.55% 98,587 2,7185.56%
    Junior subordinated debt  101,196 3,4496.87% 101,196 1,2862.56%
    Total interest-bearing liabilities $ 6,906,944$ 50,6301.48%$6,812,372$7,7510.23%
    Demand deposits  3,409,209   3,710,589  
    Other liabilities  262,951   212,425  
    Stockholders' equity  1,203,886   1,215,747  
    Total liabilities and stockholders' equity $ 11,782,990  $11,951,133  
    Net interest income (FTE)1  $ 184,948  $168,508 
    Interest rate spread   2.86%  2.99%
    Net interest margin (FTE)1   3.41%  3.08%
    Taxable equivalent adjustment  $ 797  $575 
    Net interest income  $ 184,151  $167,933 
            


    1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
           
     Non-GAAP measures     
     (unaudited, dollars in thousands)     
           
     FTE adjustment 2023  2022 
      2nd Q1st Q4th Q3rd Q2nd Q
     Net interest income$ 89,085 $95,066 $99,779 $94,478 $87,585 
     Add: FTE adjustment 402  395  392  337  290 
     Net interest income (FTE)$ 89,487 $95,461 $100,171 $94,815 $87,875 
     Average earning assets$ 10,983,347 $10,909,932 $10,801,115 $10,727,291 $10,983,020 
     Net interest margin (FTE)3 3.27% 3.55% 3.68% 3.51% 3.21%
           
      6 Months Ended June 30,   
       2023  2022    
     Net interest income$ 184,151 $167,933    
     Add: FTE adjustment 797  575    
     Net interest income (FTE)$ 184,948 $168,508    
     Average earning assets$ 10,946,842 $11,035,772    
     Net interest margin (FTE)3 3.41% 3.08%   
           
     Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.
           
     Tangible equity to tangible assets 2023  2022 
      2nd Q1st Q4th Q3rd Q2nd Q
     Total equity$ 1,210,493 $1,211,659 $1,173,554 $1,156,546 $1,188,556 
     Intangible assets 287,701  288,159  288,545  289,083  289,259 
     Total assets$ 11,890,497 $11,839,730 $11,739,296 $11,640,742 $11,720,459 
     Tangible equity to tangible assets 7.95% 7.99% 7.73% 7.64% 7.87%
           
     Return on average tangible common equity 2023  2022 
      2nd Q1st Q4th Q3rd Q2nd Q
     Net income$ 30,072 $33,658 $36,121 $38,973 $37,775 
     Amortization of intangible assets (net of tax) 344  402  404  408  409 
     Net income, excluding intangibles amortization$ 30,416 $34,060 $36,525 $39,381 $38,184 
           
     Average stockholders' equity$ 1,217,306 $1,190,316 $1,164,916 $1,201,656 $1,190,585 
     Less: average goodwill and other intangibles 287,974  288,354  288,856  289,296  289,584 
     Average tangible common equity$ 929,332 $901,962 $876,060 $912,360 $901,001 
     Return on average tangible common equity3 13.13% 15.31% 16.54% 17.12% 17.00%
           
      6 Months Ended June 30,   
       2023  2022    
     Net income$ 63,730 $76,901    
     Amortization of intangible assets (net of tax) 746  886    
     Net income, excluding intangibles amortization$ 64,476 $77,787    
           
     Average stockholders' equity$ 1,203,886 $1,215,747    
     Less: average goodwill and other intangibles 288,163  289,402    
     Average tangible common equity$ 915,723 $926,345    
     Return on average tangible common equity3 14.20% 16.93%   
           
    2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
    3Annualized.     
    4Total past due loans, defined as loans 30 days or more past due and in an accrual status.  
    5Securities are shown at average amortized cost.    
    6For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
           


    Contact: John H. Watt, Jr., President and CEO
    Scott A. Kingsley, Executive Vice President and CFO
    NBT Bancorp Inc.
    52 South Broad Street
    Norwich, NY 13815
    607-337-6589

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